Use the Following Information to Answer Questions
a Company

question 20

Multiple Choice

Use the following information to answer questions
A company reported the following information for a financial year:
£
$\begin{array}{ll}\text {Profit from ordinary activities before income tax expense }&72,000 \\\text {Income tax expense }&20,000 \\\text {Depreciation expense }&8,000 \\\text { Issue of shares}&40,000 \\\text { Loan made to another company}&6,000 \\\text {Increase in trade receivables }&1,000 \\\text { Decrease in inventories}&2,000 \\\text { Cash received from loans receivable}& 4,000\\\text {Dividends paid }&2,000 \\\end{array}$

-What is the net cash inflow (outflow) from financing activities?

• A) £38 000 net cash inflow;
• B) £40,000 net cash inflow;
• C) £42,000 net cash inflow;
• D) £(2000) net cash outflow.

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Definitions:

Economic Importance

The significance of a particular sector, industry, or commodity in contributing to the economic health and growth of a region, country, or global economy.

Fungi

A domain of organisms capable of producing spores that consume organic matter, which includes entities such as molds, yeast, different types of mushrooms, and toadstools.

Products

In a chemical reaction, substances that are formed as a result of the reaction.

Primary Mycelium

A mycelium in which the cells are monokaryotic and haploid; a mycelium that grows from either an ascospore or a basidiospore. Compare with secondary mycelium.